Introducing
Edible Oilseeds
ICAR- National Academy of Agricultural Research
Management (NAARM)
1
Presented By
Bijender
ICAR-NAARM
SUBJECT: Agriculture and Food Systems
TOPIC : Edible oilseeds
Group - 2
2
Table of content
• Introduction to oilseeds
• Factors that triggered the changes in past 25
years
• Government policies
• Major players
• Where the sector is headed in next 25 years
3
Oil seeds are oil yielding crops that are grown mostly for commercial
purposes and had to be processed mostly before consumption.
• Edible oils are plant, animal, or synthetic fat used in frying, baking,
and other types of cooking.
• These are also called cooking oils.
• Non edible oils are those which are used for industrial purposes and are
not fit for consumption.
What are Oilseeds?
4
• There are 2 types of oilseeds grown in India
1. Edible oilseeds
2. Non edible oil seeds
Edible oil seeds
• 7 types of edible oil seeds
 Groundnut
 Rapeseed & Mustard
 Soybean
 Sunflower
 Sesame
 Safflower
 Niger
Non edible oilseeds
• 2 types of non edible oil seeds
 Castor
 Linseed(ready to join
edible category)
Types of Oil seeds grown in India
5
CASTOR GROUNDNUT LINSEED
SAFFLOWER
NIGER
MUSTARD
6
SESAMUM SOYABEAN
SUNFLOWER
7
There is a special group called Tree Borne Oilseeds
(TBOs) which include
• Sal
• Mahua
• Simarouba
• Kokum
• Olive
• karanj
• Jatropha
• Neem
• Jojoba .etc.
• These are also cultivated/ grown in the country in a scattered form in forest , non
forest, waste lands, deserts and hilly areas.
• TBOs are also a good source of vegetable oil.
TREE BORNE OILSEEDS (TBOs)
8
KARANJ MAHUA
NEEM
9
• Oil seeds are the second most important determinant of agricultural
economy, next only to cereals within the segment of field crops.
• India’s vegetable oil economy is world’s 4th largest after USA, China
& Brazil.
• India had yellow revolution during 1990’s which resulted in massive
growth in edible oil production.
• India is the 5th largest oilseed crop producing country in the world.
• Oil seeds are cultivated over 26.67 million hectares of area which
accounts for 13% of Gross Cropped Area.
• Annual production is around 36.56 million tonnes (2020-21).
• They also contribute to 3% of the Gross National product(GNP) and
10% value of all agricultural commodities.
Oil Seeds in India
10
Sources of Oil seeds
Primary sources of vegetable oil
• Oilseeds are largely grown under rainfed condition over an area of
about 26 million hectares.
• Among these , Soybean (34%), Groundnut (27%), Rapeseed &
Mustard (27%) contributes to more than 88% of total oilseeds
production.
• More than 80% of vegetable oil is shared between Mustard (35%),
Soybean(23%) , groundnut (25%).
11
Sources of Oil seeds
States Major crop
Andhra Pradesh Groundnut
Gujarat Groundnut
Karnataka Groundnut
Tamil Nadu Groundnut
Madhya Pradesh Soybean
Maharashtra Soybean
Rajasthan Mustard & Soybean
Uttar Pradesh Mustard
West Bengal Mustard
Haryana Mustard
12
2019-20, NMOOP
13
Sources of Oil seeds
Secondary sources of vegetable oil
• In addition to 9 oilseeds 3 million tonnes of vegetable oil is being
harnessed from secondary sources like
 Cotton seed
 Rice bran
 Coconut
 Oil Palm
 Tree Borne Oilseeds (TBOs)
14
Usage of Oilseeds
• Usage can be broadly divided into 2 categories
1. Crushing industry : Crushing of oilseeds into vegetable oils.
2. Edible Seed Industry: It can be divided into 2 sub-groups
I. Food Manufacturing: Used as ingredients by various food
manufacturing industries and are further segmented into
food processing (e.g. spreads and sauces) and snacks.
II. Confectionery: Used as a topping on breads, bakery
products and confectionery to enrich their appearance and
texture.
15
BUT!
• India is the largest importer of vegetable oil in the world (15%) followed
by China & USA.
• The Yellow revolution during early 1990’s short-lived .
• The demand supply gap in the edible oils necessitated for huge imports
accounting for 60% of the country’s requirement.
(nearly 16 million tones worth Rs.70000 crores-2015-16)
• Although the annual growth rate is at 3.8 % for oilseed , it could not match
with the galloping rate of per capita demand of ~ 6%.
16
Groundnut
• Ground nut is the largest oilseed crop in terms of area of production.
• It stands 2nd in terms of production.
• It is cultivated in all 3 growing seasons but 80% of its acreage and
production comes in kharif (June-Oct).
41%
15%
14%
11%
5%
14%
Groundnut area 2020-21
Gujarat
Andhra Pradesh
Rajasthan
Karnataka
Madhya Pradesh
Others
Data Source- All India
Crop situation, 2020-21
kharif , GOI
17
Soybean
0
10
20
30
40
50
60
70
Madhya Pradesh Maharashtra Rajasthan Karnataka Others
Area and Production of Soybean 2020-2021
Area (la ha) Production(MT)
• Soybean is the world’s most important seed legume, which contributes to 25% of
global edible oil.
• India is 5th largest producer of Soybean in the world with nearly 110 lakh hectares
under production and nearly 135 lakh tonnes yield.
18
Mustard & Rapeseed
4202
1149 1038 956
712
1064
0
500
1000
1500
2000
2500
3000
3500
4000
4500
Rajasthan Haryana Madhya
pradesh
Uttar pradesh West Bengal Others
State wise Production(MT)2019-20
Production
• This is the 3rd largest crop by area and volume in India.
• In India, the oil obtained from mustard- rapeseed accounts for 2/3rdedible oil
consumption in the country.
• It has 6856.27 hectares under cultivation(2019-20) with a production of 9123.64
MT (2019-20)
19
FACTORS THAT
TRIGGERED
CHANGES IN EDIBLE
OILSEEDS IN THE
LAST 25 YEARS
20
1. PRICE
There was a spike of about 62% in price
1. Domestic production and availability of oilseeds in India is below the
demand.
2.The country is one the largest importers of oilseed and edible oils in the
world, about 60% of the domestic edible oil demand is met from imports.
3. Biofuel programme in Indonesia.
4. Shortage of labour in Malaysia.
5. The demand for edible oilseeds is both income and price elastic.
21
Food and Agriculture
Organization (FAO) price
index for vegetable oils, an
indicator of movement of
edible oil prices in
international market, has
soared to 162 this year,
compared to 81 in last year
22
Demand and Supply
Demand of edible oil is mainly driven by:
1. Increase in per capita consumption of edible oil.
2. Raising income levels.
3. Improvement of living standards.
23
The per capita consumption of vegetable oils has increased from around
• 1960s – 3.4kg/year
• 1970s – 4.3kg/year
• 1980s - 6.3kg/year
• 1990s - 9.9kg/year
• 2010-15 - 14.2 kg/year
0
5
10
15
20
25
30
35
2015-16 2016-17 2017-18 2018-19 2019-20
in
Kg
per
annum
Percapita Consumption of Edible Oil
INDIA WORLD
Source: https://dfpd.gov.in/imp.htm
24
Domestic Availability And Imports Of Edible Oil
0
5
10
15
20
25
30
35
40
2015-16 2016-17 2017-18 2018-19 2019-20
Quantity
in
million
MT
Year
Availability and Consumption of Edible Oils in India
Production of oilseeds Domestic Availability of Edible oils
imports of Edible oils Total Availability/ Consumption
Source: https://dfpd.gov.in/imp.htm
25
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
31304.3
31768.1
29158.4
31260.8
36309.9 36539.9 35657.2 36106.3 36964.4836090.65
38459.31
38486.09
38461.4
40010.22
38415.24
38378.79
37003.52 37093.9137408.3140616.28
AREA
HARVESTED(Ha)
YEAR
OIL SEED PROCESS - AREA HARAVESTED(Ha) [2000-
2020]
Source- DFPD oil division
26
0
20000
40000
60000
80000
100000
120000
27959.9
30659.3
23462.1
38915.3
40782.1
46476.8 46921.1
55639.3
49995.15
48903.42
65477.25
64998.63
65159.76
68651.4
100731.07
55255.78
63853.02
64264.27
59563.77
69284.21
PRODUCTION
IN
MT
YEAR
OILSEEDS PROCESS - PRODUCTION IN MT [2000-2020]
Source- DFPD oil division
27
CROPS 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
Groundnut 3700 4000 4000 4030 4220 4450 4890 5090 5275 5550
Soyabean 2240 2560 2560 2600 2775 3050 3399 3710 3880 3950
R&M 3000 3050 3100 3350 3700 4000 4200 4425 4650 -
Sesame 4200 4500 4600 4700 5000 5300 6249 6485 6855 7307
Safflower 2800 3000 3050 3300 3700 4100 4945 5215 5327 -
Sunflower 3700 3700 3750 3800 3950 4100 5388 5650 5085 6015
Niger 3500 3500 3600 3650 3825 4050 5877 5940 6695 6930
MSP OF OILSEED CROPS
(Amount in Rs./q)
28
Oilseeds received lower priority from farmers due to :-
• Less profitable technology.
• More uncertainty market price
• Dependence on rainfall.
• Vulnerability to drought, disease and pest damage.
• Prices of cereal crops were more attractive.
• Low productivity.
• Most of the oilseed crops are raised in marginal and sub marginal lands
which are having poor fertility status.
29
• Inadequate supply of best quality seeds to the farmers when
compared to cereal crops.
• Seed multiplication is very low in oilseeds.
• Production is largely in rainfed areas. Only one fourth of
the oilseed producing area in the country remains under the
irrigation.
30
• The policy impetus to oilseed production in India came for the
first time in 1986 when the government launched Technology
Mission on Oilseed. This was a golden period for oilseed
production in India when productivity jumped from 670 kg per
hectare in the eighties to 835 kg per hectare in the nineties.
31
INCENTIVE
SCHEMES OF
GOVERNMENT
32
PLAN PERIOD SCHEME Avg.Prodn.
(Million tonnes)
YIELD (Kg/ha)
V & VI
(1974-85)
IODP 11.42 621
VII-IX
(1985-02)
TMOP 19.48 825
X
(2004-12)
ISOPOM 23.33 918
XI
(2007-12)
ISOPOM 28.33 1081
XII
(2012-17)
ISOPOM /
NMOOP
30.01 1129
XII
(2014-15)
NMOOP 27.51 1054
XII
(2015-16)
NMOOP 25.25 968
XII
2016-2017
NMOOP 33.60 1261
2021 NMEO-OP 47.8 -
33
NMOOP
MM-1
(Oilseeds)
MM-2
(Oil Palm)
MM-3
(TBO’s)
34
NMOOP was implemented in 12 States viz; Andhra Pradesh,
Telangana, Chhattisgarh, Tamil Nadu, Kerala, Gujarat,
Karnataka, Odisha, Mizoram, Nagaland, Assam and Arunachal
Pradesh w.e.f. 01.04.2014.
The strategy to implement the proposed Mission includes:
• Increasing Seed Replacement Ratio (SRR) with focus on
Varietal Replacement;
• Increasing irrigation coverage under oilseeds from 26% to
36%;
• Diversification of area from low yielding cereals crops to oil
seeds crops and intercropping of oilseeds with cereals/
pulses/sugarcane.
35
• use of rice fallows
• expansion of cultivation of oil palm & tree borne oil
seeds(TBOs) in watersheds and wastelands
• increasing availability of quality planting materials of oil palm
& TBOs
• enhancing procurement of oilseeds and collection &
processing of TBOs
• Inter-cropping during gestation period of oil palm
• TBOs would provide economic return to the farmers when
there is no production.
36
TILHAN MISSION
• In Feb 2020, the Union Agriculture Minister announced that the
government will launch Tilhan Mission to make the country self-reliant in
oilseed production.
• The main objective of National Tilhan Mission 2021 is to encourage local
farmers to produce oilseeds and thereby reducing import of edible oils.
37
National Mission on Edible oil- Oil
Palm
• NMEO proposal aim to reduce the import dependence
from 60% to 45% by 2024-25 by increasing domestic
edible oil production from 10.5 million tonnes to 18
million tonnes, a 70% growth target.
• Rs.11000 crore for self sufficiency in edible oil
production.
• Govt will ensure the supply of quality seeds & technology
to farmers.
• Promotion of cultivation of oil palm & other traditional
oilseed crops.
38
Imports
• Of imported edible oils , share of palm oil is about 60% followed by
soybean oil with a share of 25% and sunflower (12%).
• Import growth in respect of edible oils during the last decades is about
174%.
0
5
10
15
20
25
30
2010-
11
2011-
12
2012-
13
2013-
14
2014-
15
2015-
16
2016-
17
2017-
18
2018-
19
2019-
20
2020-
21
Comparison of Imports and domestic
availability of edible oil
Imports Domestic Availability Total availability/ consumption
Data source-DFPD oil division
39
Exports
• India was never a big exporter of edible oils.
• India’s export basket comprised of premium oils with higher value realization
(refined coconut, groundnut and sesame oils) and recently DOC oil meals, castor
oil , groundnut oil and sesame oil contributes largest share.
• The export figure of edible oils during 2019-20 reveals that India exported a total
of 1.3 million tonnes of edible oils worthing Rs.2000 crore
OILS 2015-16 2016-17 2017-18 2018-19 2019-20
Soyabean oil Ref 1307.16 425.56 2186.62 0 11048
Groundnut Oil Crude 8110.39 5499.77 948 5072.35 75991
Groundnut Oil Ref 3181.08 7053.54 17229.96 4334.38 15132
Sunflower oil Ref 2366.51 2534.34 3174.82 3309.84 2743
Cottonseed Oil Crude 1500.31 184.4 10.79 7.14 31
Coconut Oil Crude 10669.7 6031.17 86.41 21.67 130
Coconut Oil Ref. 10868.1 12756.4 6565.58 7432.36 9101
Rice Bran oil 7294.62 9584.23 12829.3 13154.13 10354
Sesame oil Ref 331 1411.28 309.18 26.44 1641
Mustard Oil Crude 2181.05 630.91 0.18 20.21 715
Mustard Oil Ref. 67.16 1831.12 3695.42 3828.86 5095
TOTAL 47894.8 47962.3 47036.7 37208.05 130340
(Qty in MT)
Source : Department of Commerce
40
Top Edible-Oil companies in India
41
Where after 25 years?
• Oilseeds sector has been growing at 4.1% production per annum in the
last three decades
• Per capita demand is expected to increase at the global level
• Per capita consumption is expected to increase by 60% in developing
countries, in South Asia the consumption is projected to be almost double
(FAO, 2006).
• The Per capita food consumption is estimated to be 2980 kcal/person/day
by 2050 with 38% contribution from oil products.
Year Consumption
(kg/person/ye
ar)
Calories
supplied
(kcal)
1990/1991 4.9 136
1999/2001 10.4 272
42
Growing demand for Oilseeds
• The per capita consumption vegetable oils, oilseeds and products is
anticipated to be around 15 and 18 kg in South Asia during 2030 and
2050 respectively.
• This translates to consumption of 41 and 49g of oil per day. (higher
than the recommendations of WHO and ICMR of 30g/day)
• Per capita consumption is likely to increase at much slower rates
compared to the past.
• The per capita utilisation of oil crops for all the uses is around 30.5
kg per annum that includes16.2 kg directly towards food.
• The global production of vegetable oil is estimated to be 215.5
million tonnes by 2030 and 293.2 million tonnes by 2050 (FAO
Projections).
43
• India needs to produce 17.84 million tonnes of vegetable oils to meet
the nutritional fat needs of projected population of 1685 million
(Hedge,2021) – Well Fed and Healthy India
• Estimated total demand for edible oils in 2050 would be 11.19 and
40.89 million tonnes respectively (lower &upper limits) (Singh,
2012)
• 590 million people or 40% of India’s population will live in cities by
2030 (McKinsey Global Institute, 2010)
INDIA
44
2020 2025 2030
Per capita
consumptio
n of
vegetable
oils
(kg/year)
16.38 19.45 23.10
Production
of edible
oilseeds
(million
tonnes)
66.80 84.60 102.30
Vegetable
oil
requirement
(million
tonnes)
22.27 28.20 34.10
Projected
Population
(billion)
1.36 1.42 1.48
DAC-Rabo Bank (2019) Projection for India
45
Demand projections of vegetable oils for India
Demand source 2020 2030 2040 2050
Projected population (billion) 1.32 1.43 1.55 1.68
Per capita consumption considering 50, 60, 70 and 75% above the prescribed consumption level during
2020,2030,2040 and 2050, respectively.
Per capita consumption (kg/annum) 16.43 17.52 18.62 19.16
Vegetable oil requirement for direct
consumption (million tonnes)
21.69 23.13 24.58 25.29
Vegetable oil requirement for non
industrial uses (million tonnes)
3.57 6.34 9.69 10.61
Vegetable oil requirement (million
tonnes)
25.26 29.47 34.27 35.90
Vegetable oil availability from
secondary sources (million tonnes)
5.05 5.89 6.85 7.18
Vegetable oil requirement from
annual oilseed crops (million tonnes)
20.21 23.58 27.42 28.72
Total Vegetable oilseed requirement
from nine annual oilseed crops
(million tonnes)
67.37 71.45 80.65 82.06
46
Source : Vision 2050,Directorate of Oilseed Research
How can the demands be achieved?
• Improving oilseeds productivity
There is limited scope to bring the additional area under oilseeds, the bulk of the
future increases in oilseed production have to adoption of better technologies
• The postharvest technology like processing, marketing and proper storage
facilities should be assured.
We can achieve an average productivity of about 1.5 t/ha by 2020 and 2.0 t/ha by
2050, if concerted efforts are made for effective dissemination of available
improved technologies
• Increase production of supplementary sources of edible oils along with
bridging the yield gap in annual oilseeds.
47
Major Challenges Ahead
• Small holder’s Agriculture
The Avg size of holding that was 2.06 ha during 70’s has
reduced to 1.06 ha during 2009-10.
It is estimated that the Avg size may shrink to 0.29 and 0.28
ha by 2030 and 2050 respectively.
• Climate change and its impending effects
• Shifts in pest scenario
• Biosecurity and plant health management concerns
48
Requirements for the change
Improving Productivity
 Supply of high yielding quality certified seeds to farmers in time.
 Increased area under oilseeds in irrigated conditions.
 Use of labour saving implements especially for sowing and
harvesting of Groundnut.
 Maintenance of optimum plant population using
seed drill.
49
Technology transfer systems
 New approaches on a participatory mode are to be
strengthened for effective delivery mechanism by show-
casing the potential technologies/products.
 The Farmer-Institution-Industry linkage mechanism should
be strengthened besides the existing formal delivery
mechanisms.
50
Strengthening stakeholder linkages
 The existing formal and informal linkages would further
be strengthened with farmers, international and national
institutes.
 Opportunities for linking relevant KVKs, Project
Coordinating units would be explored for further
formalizing the relations.
51
Works Cited
• [Online] / auth. Invesco Alpha. -
https://www.alphainvesco.com/blog/edible-oil-industry-of-india-a-
brief-overview/.
• Commodity Profile of Edible Oil for April - 2018 [Report] / auth.
Department of Agriculture and Farmers Welfare. - [s.l.] : Ministry of
Agriculture & Farmers Welfare, 2018.
• Oilseeds in India / auth. (NMOOP) National Mission on Oilseeds and
OilPalm. - [s.l.] : Ministry of Agriculture and Farmers Welfare.
• Present Status of Oilseed crops and vegetable oils in India
[Report] / auth. Mission National Food Security. - [s.l.] : NFSM, 2017.
(Department, 2018) (Invesco) ((NMOOP))
52
Bibliography
• Bhar, S. (2021, August 11). Google. Retrieved from Prepp:
http://prepp.in/news/e-492-national-mission-on-edible-oil-oil-palm
• Narayan, P. (2017). Recent demand- Supply and Growth of
Oilseeds and Edible Oil in India: An Analytical Approach.
International Journal of Advanced Engineering Research and
Science, 32-46.
• Vision 2050 (2013). Rajendranagar, Hyderabad: Directorate of
Oilseeds Research, ICAR.
• DFDP oil division
• Ministry of commerce – trade statistics
• Welcome to ICAR-Directorate of Rapeseed-Mustard Research,
Bharatpur, Rajasthan, India (drmr.res.in)
• Soybean Production By State | SOPA
• GROUNDNUT (icar.gov.in)
53

Edible oil seeds group

  • 1.
    Introducing Edible Oilseeds ICAR- NationalAcademy of Agricultural Research Management (NAARM) 1
  • 2.
    Presented By Bijender ICAR-NAARM SUBJECT: Agricultureand Food Systems TOPIC : Edible oilseeds Group - 2 2
  • 3.
    Table of content •Introduction to oilseeds • Factors that triggered the changes in past 25 years • Government policies • Major players • Where the sector is headed in next 25 years 3
  • 4.
    Oil seeds areoil yielding crops that are grown mostly for commercial purposes and had to be processed mostly before consumption. • Edible oils are plant, animal, or synthetic fat used in frying, baking, and other types of cooking. • These are also called cooking oils. • Non edible oils are those which are used for industrial purposes and are not fit for consumption. What are Oilseeds? 4
  • 5.
    • There are2 types of oilseeds grown in India 1. Edible oilseeds 2. Non edible oil seeds Edible oil seeds • 7 types of edible oil seeds  Groundnut  Rapeseed & Mustard  Soybean  Sunflower  Sesame  Safflower  Niger Non edible oilseeds • 2 types of non edible oil seeds  Castor  Linseed(ready to join edible category) Types of Oil seeds grown in India 5
  • 6.
  • 7.
  • 8.
    There is aspecial group called Tree Borne Oilseeds (TBOs) which include • Sal • Mahua • Simarouba • Kokum • Olive • karanj • Jatropha • Neem • Jojoba .etc. • These are also cultivated/ grown in the country in a scattered form in forest , non forest, waste lands, deserts and hilly areas. • TBOs are also a good source of vegetable oil. TREE BORNE OILSEEDS (TBOs) 8
  • 9.
  • 10.
    • Oil seedsare the second most important determinant of agricultural economy, next only to cereals within the segment of field crops. • India’s vegetable oil economy is world’s 4th largest after USA, China & Brazil. • India had yellow revolution during 1990’s which resulted in massive growth in edible oil production. • India is the 5th largest oilseed crop producing country in the world. • Oil seeds are cultivated over 26.67 million hectares of area which accounts for 13% of Gross Cropped Area. • Annual production is around 36.56 million tonnes (2020-21). • They also contribute to 3% of the Gross National product(GNP) and 10% value of all agricultural commodities. Oil Seeds in India 10
  • 11.
    Sources of Oilseeds Primary sources of vegetable oil • Oilseeds are largely grown under rainfed condition over an area of about 26 million hectares. • Among these , Soybean (34%), Groundnut (27%), Rapeseed & Mustard (27%) contributes to more than 88% of total oilseeds production. • More than 80% of vegetable oil is shared between Mustard (35%), Soybean(23%) , groundnut (25%). 11
  • 12.
    Sources of Oilseeds States Major crop Andhra Pradesh Groundnut Gujarat Groundnut Karnataka Groundnut Tamil Nadu Groundnut Madhya Pradesh Soybean Maharashtra Soybean Rajasthan Mustard & Soybean Uttar Pradesh Mustard West Bengal Mustard Haryana Mustard 12
  • 13.
  • 14.
    Sources of Oilseeds Secondary sources of vegetable oil • In addition to 9 oilseeds 3 million tonnes of vegetable oil is being harnessed from secondary sources like  Cotton seed  Rice bran  Coconut  Oil Palm  Tree Borne Oilseeds (TBOs) 14
  • 15.
    Usage of Oilseeds •Usage can be broadly divided into 2 categories 1. Crushing industry : Crushing of oilseeds into vegetable oils. 2. Edible Seed Industry: It can be divided into 2 sub-groups I. Food Manufacturing: Used as ingredients by various food manufacturing industries and are further segmented into food processing (e.g. spreads and sauces) and snacks. II. Confectionery: Used as a topping on breads, bakery products and confectionery to enrich their appearance and texture. 15
  • 16.
    BUT! • India isthe largest importer of vegetable oil in the world (15%) followed by China & USA. • The Yellow revolution during early 1990’s short-lived . • The demand supply gap in the edible oils necessitated for huge imports accounting for 60% of the country’s requirement. (nearly 16 million tones worth Rs.70000 crores-2015-16) • Although the annual growth rate is at 3.8 % for oilseed , it could not match with the galloping rate of per capita demand of ~ 6%. 16
  • 17.
    Groundnut • Ground nutis the largest oilseed crop in terms of area of production. • It stands 2nd in terms of production. • It is cultivated in all 3 growing seasons but 80% of its acreage and production comes in kharif (June-Oct). 41% 15% 14% 11% 5% 14% Groundnut area 2020-21 Gujarat Andhra Pradesh Rajasthan Karnataka Madhya Pradesh Others Data Source- All India Crop situation, 2020-21 kharif , GOI 17
  • 18.
    Soybean 0 10 20 30 40 50 60 70 Madhya Pradesh MaharashtraRajasthan Karnataka Others Area and Production of Soybean 2020-2021 Area (la ha) Production(MT) • Soybean is the world’s most important seed legume, which contributes to 25% of global edible oil. • India is 5th largest producer of Soybean in the world with nearly 110 lakh hectares under production and nearly 135 lakh tonnes yield. 18
  • 19.
    Mustard & Rapeseed 4202 11491038 956 712 1064 0 500 1000 1500 2000 2500 3000 3500 4000 4500 Rajasthan Haryana Madhya pradesh Uttar pradesh West Bengal Others State wise Production(MT)2019-20 Production • This is the 3rd largest crop by area and volume in India. • In India, the oil obtained from mustard- rapeseed accounts for 2/3rdedible oil consumption in the country. • It has 6856.27 hectares under cultivation(2019-20) with a production of 9123.64 MT (2019-20) 19
  • 20.
    FACTORS THAT TRIGGERED CHANGES INEDIBLE OILSEEDS IN THE LAST 25 YEARS 20
  • 21.
    1. PRICE There wasa spike of about 62% in price 1. Domestic production and availability of oilseeds in India is below the demand. 2.The country is one the largest importers of oilseed and edible oils in the world, about 60% of the domestic edible oil demand is met from imports. 3. Biofuel programme in Indonesia. 4. Shortage of labour in Malaysia. 5. The demand for edible oilseeds is both income and price elastic. 21
  • 22.
    Food and Agriculture Organization(FAO) price index for vegetable oils, an indicator of movement of edible oil prices in international market, has soared to 162 this year, compared to 81 in last year 22
  • 23.
    Demand and Supply Demandof edible oil is mainly driven by: 1. Increase in per capita consumption of edible oil. 2. Raising income levels. 3. Improvement of living standards. 23
  • 24.
    The per capitaconsumption of vegetable oils has increased from around • 1960s – 3.4kg/year • 1970s – 4.3kg/year • 1980s - 6.3kg/year • 1990s - 9.9kg/year • 2010-15 - 14.2 kg/year 0 5 10 15 20 25 30 35 2015-16 2016-17 2017-18 2018-19 2019-20 in Kg per annum Percapita Consumption of Edible Oil INDIA WORLD Source: https://dfpd.gov.in/imp.htm 24
  • 25.
    Domestic Availability AndImports Of Edible Oil 0 5 10 15 20 25 30 35 40 2015-16 2016-17 2017-18 2018-19 2019-20 Quantity in million MT Year Availability and Consumption of Edible Oils in India Production of oilseeds Domestic Availability of Edible oils imports of Edible oils Total Availability/ Consumption Source: https://dfpd.gov.in/imp.htm 25
  • 26.
    0 5000 10000 15000 20000 25000 30000 35000 40000 45000 31304.3 31768.1 29158.4 31260.8 36309.9 36539.9 35657.236106.3 36964.4836090.65 38459.31 38486.09 38461.4 40010.22 38415.24 38378.79 37003.52 37093.9137408.3140616.28 AREA HARVESTED(Ha) YEAR OIL SEED PROCESS - AREA HARAVESTED(Ha) [2000- 2020] Source- DFPD oil division 26
  • 27.
  • 28.
    CROPS 2012-13 2013-142014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Groundnut 3700 4000 4000 4030 4220 4450 4890 5090 5275 5550 Soyabean 2240 2560 2560 2600 2775 3050 3399 3710 3880 3950 R&M 3000 3050 3100 3350 3700 4000 4200 4425 4650 - Sesame 4200 4500 4600 4700 5000 5300 6249 6485 6855 7307 Safflower 2800 3000 3050 3300 3700 4100 4945 5215 5327 - Sunflower 3700 3700 3750 3800 3950 4100 5388 5650 5085 6015 Niger 3500 3500 3600 3650 3825 4050 5877 5940 6695 6930 MSP OF OILSEED CROPS (Amount in Rs./q) 28
  • 29.
    Oilseeds received lowerpriority from farmers due to :- • Less profitable technology. • More uncertainty market price • Dependence on rainfall. • Vulnerability to drought, disease and pest damage. • Prices of cereal crops were more attractive. • Low productivity. • Most of the oilseed crops are raised in marginal and sub marginal lands which are having poor fertility status. 29
  • 30.
    • Inadequate supplyof best quality seeds to the farmers when compared to cereal crops. • Seed multiplication is very low in oilseeds. • Production is largely in rainfed areas. Only one fourth of the oilseed producing area in the country remains under the irrigation. 30
  • 31.
    • The policyimpetus to oilseed production in India came for the first time in 1986 when the government launched Technology Mission on Oilseed. This was a golden period for oilseed production in India when productivity jumped from 670 kg per hectare in the eighties to 835 kg per hectare in the nineties. 31
  • 32.
  • 33.
    PLAN PERIOD SCHEMEAvg.Prodn. (Million tonnes) YIELD (Kg/ha) V & VI (1974-85) IODP 11.42 621 VII-IX (1985-02) TMOP 19.48 825 X (2004-12) ISOPOM 23.33 918 XI (2007-12) ISOPOM 28.33 1081 XII (2012-17) ISOPOM / NMOOP 30.01 1129 XII (2014-15) NMOOP 27.51 1054 XII (2015-16) NMOOP 25.25 968 XII 2016-2017 NMOOP 33.60 1261 2021 NMEO-OP 47.8 - 33
  • 34.
  • 35.
    NMOOP was implementedin 12 States viz; Andhra Pradesh, Telangana, Chhattisgarh, Tamil Nadu, Kerala, Gujarat, Karnataka, Odisha, Mizoram, Nagaland, Assam and Arunachal Pradesh w.e.f. 01.04.2014. The strategy to implement the proposed Mission includes: • Increasing Seed Replacement Ratio (SRR) with focus on Varietal Replacement; • Increasing irrigation coverage under oilseeds from 26% to 36%; • Diversification of area from low yielding cereals crops to oil seeds crops and intercropping of oilseeds with cereals/ pulses/sugarcane. 35
  • 36.
    • use ofrice fallows • expansion of cultivation of oil palm & tree borne oil seeds(TBOs) in watersheds and wastelands • increasing availability of quality planting materials of oil palm & TBOs • enhancing procurement of oilseeds and collection & processing of TBOs • Inter-cropping during gestation period of oil palm • TBOs would provide economic return to the farmers when there is no production. 36
  • 37.
    TILHAN MISSION • InFeb 2020, the Union Agriculture Minister announced that the government will launch Tilhan Mission to make the country self-reliant in oilseed production. • The main objective of National Tilhan Mission 2021 is to encourage local farmers to produce oilseeds and thereby reducing import of edible oils. 37
  • 38.
    National Mission onEdible oil- Oil Palm • NMEO proposal aim to reduce the import dependence from 60% to 45% by 2024-25 by increasing domestic edible oil production from 10.5 million tonnes to 18 million tonnes, a 70% growth target. • Rs.11000 crore for self sufficiency in edible oil production. • Govt will ensure the supply of quality seeds & technology to farmers. • Promotion of cultivation of oil palm & other traditional oilseed crops. 38
  • 39.
    Imports • Of importededible oils , share of palm oil is about 60% followed by soybean oil with a share of 25% and sunflower (12%). • Import growth in respect of edible oils during the last decades is about 174%. 0 5 10 15 20 25 30 2010- 11 2011- 12 2012- 13 2013- 14 2014- 15 2015- 16 2016- 17 2017- 18 2018- 19 2019- 20 2020- 21 Comparison of Imports and domestic availability of edible oil Imports Domestic Availability Total availability/ consumption Data source-DFPD oil division 39
  • 40.
    Exports • India wasnever a big exporter of edible oils. • India’s export basket comprised of premium oils with higher value realization (refined coconut, groundnut and sesame oils) and recently DOC oil meals, castor oil , groundnut oil and sesame oil contributes largest share. • The export figure of edible oils during 2019-20 reveals that India exported a total of 1.3 million tonnes of edible oils worthing Rs.2000 crore OILS 2015-16 2016-17 2017-18 2018-19 2019-20 Soyabean oil Ref 1307.16 425.56 2186.62 0 11048 Groundnut Oil Crude 8110.39 5499.77 948 5072.35 75991 Groundnut Oil Ref 3181.08 7053.54 17229.96 4334.38 15132 Sunflower oil Ref 2366.51 2534.34 3174.82 3309.84 2743 Cottonseed Oil Crude 1500.31 184.4 10.79 7.14 31 Coconut Oil Crude 10669.7 6031.17 86.41 21.67 130 Coconut Oil Ref. 10868.1 12756.4 6565.58 7432.36 9101 Rice Bran oil 7294.62 9584.23 12829.3 13154.13 10354 Sesame oil Ref 331 1411.28 309.18 26.44 1641 Mustard Oil Crude 2181.05 630.91 0.18 20.21 715 Mustard Oil Ref. 67.16 1831.12 3695.42 3828.86 5095 TOTAL 47894.8 47962.3 47036.7 37208.05 130340 (Qty in MT) Source : Department of Commerce 40
  • 41.
  • 42.
    Where after 25years? • Oilseeds sector has been growing at 4.1% production per annum in the last three decades • Per capita demand is expected to increase at the global level • Per capita consumption is expected to increase by 60% in developing countries, in South Asia the consumption is projected to be almost double (FAO, 2006). • The Per capita food consumption is estimated to be 2980 kcal/person/day by 2050 with 38% contribution from oil products. Year Consumption (kg/person/ye ar) Calories supplied (kcal) 1990/1991 4.9 136 1999/2001 10.4 272 42
  • 43.
    Growing demand forOilseeds • The per capita consumption vegetable oils, oilseeds and products is anticipated to be around 15 and 18 kg in South Asia during 2030 and 2050 respectively. • This translates to consumption of 41 and 49g of oil per day. (higher than the recommendations of WHO and ICMR of 30g/day) • Per capita consumption is likely to increase at much slower rates compared to the past. • The per capita utilisation of oil crops for all the uses is around 30.5 kg per annum that includes16.2 kg directly towards food. • The global production of vegetable oil is estimated to be 215.5 million tonnes by 2030 and 293.2 million tonnes by 2050 (FAO Projections). 43
  • 44.
    • India needsto produce 17.84 million tonnes of vegetable oils to meet the nutritional fat needs of projected population of 1685 million (Hedge,2021) – Well Fed and Healthy India • Estimated total demand for edible oils in 2050 would be 11.19 and 40.89 million tonnes respectively (lower &upper limits) (Singh, 2012) • 590 million people or 40% of India’s population will live in cities by 2030 (McKinsey Global Institute, 2010) INDIA 44
  • 45.
    2020 2025 2030 Percapita consumptio n of vegetable oils (kg/year) 16.38 19.45 23.10 Production of edible oilseeds (million tonnes) 66.80 84.60 102.30 Vegetable oil requirement (million tonnes) 22.27 28.20 34.10 Projected Population (billion) 1.36 1.42 1.48 DAC-Rabo Bank (2019) Projection for India 45
  • 46.
    Demand projections ofvegetable oils for India Demand source 2020 2030 2040 2050 Projected population (billion) 1.32 1.43 1.55 1.68 Per capita consumption considering 50, 60, 70 and 75% above the prescribed consumption level during 2020,2030,2040 and 2050, respectively. Per capita consumption (kg/annum) 16.43 17.52 18.62 19.16 Vegetable oil requirement for direct consumption (million tonnes) 21.69 23.13 24.58 25.29 Vegetable oil requirement for non industrial uses (million tonnes) 3.57 6.34 9.69 10.61 Vegetable oil requirement (million tonnes) 25.26 29.47 34.27 35.90 Vegetable oil availability from secondary sources (million tonnes) 5.05 5.89 6.85 7.18 Vegetable oil requirement from annual oilseed crops (million tonnes) 20.21 23.58 27.42 28.72 Total Vegetable oilseed requirement from nine annual oilseed crops (million tonnes) 67.37 71.45 80.65 82.06 46 Source : Vision 2050,Directorate of Oilseed Research
  • 47.
    How can thedemands be achieved? • Improving oilseeds productivity There is limited scope to bring the additional area under oilseeds, the bulk of the future increases in oilseed production have to adoption of better technologies • The postharvest technology like processing, marketing and proper storage facilities should be assured. We can achieve an average productivity of about 1.5 t/ha by 2020 and 2.0 t/ha by 2050, if concerted efforts are made for effective dissemination of available improved technologies • Increase production of supplementary sources of edible oils along with bridging the yield gap in annual oilseeds. 47
  • 48.
    Major Challenges Ahead •Small holder’s Agriculture The Avg size of holding that was 2.06 ha during 70’s has reduced to 1.06 ha during 2009-10. It is estimated that the Avg size may shrink to 0.29 and 0.28 ha by 2030 and 2050 respectively. • Climate change and its impending effects • Shifts in pest scenario • Biosecurity and plant health management concerns 48
  • 49.
    Requirements for thechange Improving Productivity  Supply of high yielding quality certified seeds to farmers in time.  Increased area under oilseeds in irrigated conditions.  Use of labour saving implements especially for sowing and harvesting of Groundnut.  Maintenance of optimum plant population using seed drill. 49
  • 50.
    Technology transfer systems New approaches on a participatory mode are to be strengthened for effective delivery mechanism by show- casing the potential technologies/products.  The Farmer-Institution-Industry linkage mechanism should be strengthened besides the existing formal delivery mechanisms. 50
  • 51.
    Strengthening stakeholder linkages The existing formal and informal linkages would further be strengthened with farmers, international and national institutes.  Opportunities for linking relevant KVKs, Project Coordinating units would be explored for further formalizing the relations. 51
  • 52.
    Works Cited • [Online]/ auth. Invesco Alpha. - https://www.alphainvesco.com/blog/edible-oil-industry-of-india-a- brief-overview/. • Commodity Profile of Edible Oil for April - 2018 [Report] / auth. Department of Agriculture and Farmers Welfare. - [s.l.] : Ministry of Agriculture & Farmers Welfare, 2018. • Oilseeds in India / auth. (NMOOP) National Mission on Oilseeds and OilPalm. - [s.l.] : Ministry of Agriculture and Farmers Welfare. • Present Status of Oilseed crops and vegetable oils in India [Report] / auth. Mission National Food Security. - [s.l.] : NFSM, 2017. (Department, 2018) (Invesco) ((NMOOP)) 52
  • 53.
    Bibliography • Bhar, S.(2021, August 11). Google. Retrieved from Prepp: http://prepp.in/news/e-492-national-mission-on-edible-oil-oil-palm • Narayan, P. (2017). Recent demand- Supply and Growth of Oilseeds and Edible Oil in India: An Analytical Approach. International Journal of Advanced Engineering Research and Science, 32-46. • Vision 2050 (2013). Rajendranagar, Hyderabad: Directorate of Oilseeds Research, ICAR. • DFDP oil division • Ministry of commerce – trade statistics • Welcome to ICAR-Directorate of Rapeseed-Mustard Research, Bharatpur, Rajasthan, India (drmr.res.in) • Soybean Production By State | SOPA • GROUNDNUT (icar.gov.in) 53